The recent move by the Reserve Bank of Australia (RBA) to lower interest rates by twenty five basis points presents a significant opportunity for brokers in the marketplace.
Lenders have inherently heightened the interest of consumers with offers of lowered variable interest rates but with the aggressive marketing campaigns undertaken to generate increased traffic how are borrowers to know they’re getting the best deal? This scenario has presented brokers with the opportunity to showcase their unique proposition of being independent of major banks and lenders by providing impartial assessment of their home loan solutions. Simply put lower rates and lender competition places brokers in a prime position to help borrowers.
But how many brokers out there have taken advantage of this?
Interest rate movements have provided brokers with the perfect catalyst to speak to not just new clients but existing ones as well. It is said that it is five times easier to service an existing client than seek out a new one. In an industry based upon relationships, it’s not only critical to your business to continually build on your client base but equally as important is offering repeat service to your existing clients. Existing clients present a wealth of opportunity when interest rates drop, including;
• refinance or debt consolidation,
• restructure of existing facilities,
• removal of excess security held by the lender, and,
• a fresh interest in purchasing an investment property or owner occupied property.
On the flip side, if brokers aren’t connecting with their customers perhaps the lender is. Perhaps another broker, more eager than you, is talking to your clients as you are reading this?
Remember there is no client like the one you already have, so stay close with them. Stay really close.
Mark De Martino is National Director of Sales, Loan Market